Pessimistic comments on technology companies from Wall Street analysts have spooked the market in recent days, spurring investors to cash in on strong gains in the high-tech sector made over the past month.

"You're just not going to get people buying (technology stocks) blindly as they have in past years. They're more sensitive to the price they pay," said Marshall Acuff, an equity analyst at Salomon Smith Barney.

Acuff added that was helping drive investors into some of the blue-chip shares. "You're getting better value there relative to future growth."

Worldcom (Nasdaq: WCOM) fell for the second straight day following its announcement of an agreement to buy Intermedia, the parent company of Digex (Nasdaq: DIGX), for $3 billion. Worldcom, which was downgraded by a pair of analysts, lost 2 1/4 to 31 1/2 as the most active stock on U.S. markets. Digex moved up 7/8 to 68 3/4.

Shares of CDMA wireless proponent Qualcomm (Nasdaq: QCOM) gained 61 13/16 to 2 7/16. Chinese and foreign telecoms manufacturers, who would stand to earn billions of dollars selling CDMA equipment and handsets, said on Tuesday China Unicom had signalled it may build narrowband CDMA networks as early as January.